Investing with Us
New Fund
We are launching our third Fund focused on accessing the hard-to-reach high value companies based in the nation’s capital. Get in contact to register interest.
The ROI
We have a deep history in investing in emerging and deep tech startups, partnering with universities, governments and attracting capital to the sector.
Built over twenty years and two predecessor funds where we were first investors in Canberra’s early and now much celebrated technology startup success stories (Seeing Machines, DigitalCore, Instaclustr) and pivotal in building the innovation ecosystem in Canberra.
Co-Invest
Investors can co-invest in our portfolio companies as they have successive investment rounds. Access our active management approach, get early access into some of Australian’s most exciting technologies and get exposure alongside professional VC Investors. Co-investment trusts we have raised include:
Why Early Stage Investing?
Significant has a focus on early stage investments for the following reasons:
- Potential for extraordinary returns.
- Fast & high growth with limited competition.
- Leverage non-dilutive funding.
- Access investment in the future market leading companies at pre-screened low valuation entry points.
- Secure attractive follow-on rights.
- As a compliant ESVCLP, Significant enables its investors to access ESVCLP tax incentives and concessions, including tax-free income and capital gains from eligible investments.
Frequently asked questions (FAQs)
What is your investment process?
We invest considerable time getting to know the founding team, understanding the market need through direct market analysis and industry interviews, and being patient.
Relationships take time to form, and we want to make sure that we are 100% believers when we invest behind an idea and a team. At that point we are committed to the opportunity, the team and the execution plan.
We will have a view on the realisation pathways and what has to be achieved ahead of the next funding round.
We will be aware of the founder strengths and development areas, and we will have agreed deliverables or milestones (financial, technical, market, team) that we need to see accountability and progress on.
The investment process underpins the way we then look at governance. It might be that an operational advisory committee is more appropriate given the stage or that it is ready for a full governance board with an experienced Chair and directors.
All decisions to deep-dive with a company are reviewed and approved by the Investment Committee. There is then a due diligence period that can be as short as 3 weeks and as long as 3 months depending on the complexity of the business, the technology and the market.
The investment recommendation approved by the Investment Committee then forms the basis for the performance framework.
What is your approach to ESG?
We only back founders who understand the imperatives of sustainability development and personal accountability. We work with founders to ensure that governance is a fundamental tenet of their business and where possible, work with founders to adopt “impact-led” metrics and outcomes into their business models.
Do you invest in companies outside of Australia?
Generally, no. As an ESCVLP, we are able to do some investment outside Australia, but we reserve this primarily for our portfolio companies that ultimately raise on exchanges like NASDAQ and FTSE.
What do I need to provide for due diligence?
Every company is different and so every diligence process is nuanced. However, we consistently cover 3 key risk areas: market-product fit, external market factors, internal risk factors. We deep dive into and typically engage experts to assess technology advantage and IP, product development and production, market scale and adoption strategies, commercial business model, resourcing and access to talent, financial and funding risk.
Over the course of the diligence period, we are assessing one of the greatest risks: founder skills, style and capability. We are looking for evidence of the founder’s unwavering commitment to the vision and the business to learn how they overcome difficulties and manage conflict, and better understand their leadership and technical strengths and development needs. If there is more than one founder, we will also need to understand the depth and complementary nature of the relationship.
I have heard you are an active investor, what does that means?
Our due diligence provides critical insight into how we, as a long-term investor, can best serve the founder and the company’s growth aspirations. Is it all-in the trenches for a period? Is it focus on governance, financial management and accountability? Strategy development? C-suite client engagement and unlocking customer insights for better product fit? Or is it sourcing key talent, forming an industry-heavy board and finding the right Chair or CEO? Or just providing a small supportive investment that fills out the round behind a strong professional lead investor.
We will assess the level of need and our ability to contribute. In most cases, due to the early stage of the company, we will require full board rights or at least, observer rights. We prefer a “light-touch” approach to governance where we focus on planning and execution of the one or two things that create value and demonstrate product-market fit.
Who can invest in our investment opportunities?
Investors need to be wholesale/sophisticated investors, family offices or wealth managers with clients predominantly in Australia. To qualify, investors must provide an accountant’s certification that they have at least $2.5 million net assets or annual gross income of at least $250,000.
You will also be required to complete a KYC and AML process and provide the supporting documentation as well as complete the overarching fund and trust documents.
Are you able to invest in the Fund?
SCV Fund II is closed to new investors. However, you can join us in the syndicated investment vehicles. These are invested alongside the fund and investors are welcome to access the team’s diligence and investment recommendations as part of completing their own diligence.
SCV Fund III is open, get in contact to register interest. The focus will be to uncover and invest in the best emerging founders and technologies emanating from the Australian research and start-up ecosystem, with a unique opportunity to source from the Canberra innovation pipeline where the investment team is based. Investment will be from pre-seed through the Series B with capability for strong follow-on investment across the exceptional early-stage companies as they seek global growth expansion.
What are the tax benefits of the Fund?
Investors benefit from an ESVCLP’s flow-through tax status. The partnership itself is not taxed and the income and gains flow through to investors. This avoids double taxation.
Investors in an ESVCLP are exempt from tax on their share of:
- income and gains from eligible early stage venture capital investments
- income and gains from disposing of eligible venture capital investments
The tax benefits for investors depend on a number of factors. More detailed information on these tax benefits can be found in the ESVCLP Customer Information Guide.
What other Investor benefits are there?
Significant provides investors with:
- Access to restricted investment opportunities into portfolio companies
- Access to select Hindmarsh property development investment opportunities
- Shared access to pipeline companies that SCV has reviewed but “passed” on
- Quarterly video presentations on fund performance
- Annual presentations from portfolio companies
- Annual written performance report
- Regular in-person events to meet founders, investors and key network partners.
About Hindmarsh Capital
Hindmarsh is part of the Hindmarsh Group which operates AFSL 415657 through Hindmarsh Capital. Founded in Canberra by John Hindmarsh over 45 years ago, the Hindmarsh Group is a family-owned integrated mid-tier building company integrated construction, development, retirement, parking and funds management.
With over 300 staff, Hindmarsh Construction specialises in project and construction management for the local, national and international clients. With a portfolio of high profile, technically unique projects, our work spans across sectors including:
- Research Institutes
- Data Centres (large scale, highly secure)
- Industrial (Warehouse & Smart Buildings)
- Aged Care
- Education (Tertiary & Universities), and many more.
Hindmarsh has built a reputation as a highly technical builder able to execute on the exceptional quality and partnership requirements of Australia’s leading research, medical and digital institutions.
As a result, Hindmarsh has had the opportunity to build some of the most iconic and technically sophisticated institutes in Australia.